The Gold Coast suburbs posting double-digit price growth - Queensland Property Investor
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Gold Coast

The Gold Coast suburbs posting double-digit price growth

The Gold Coast suburbs posting double-digit price growth
The Gold Coast property market has seen impressive sales booms in some suburbs while prices have fallen in Brisbane, new data has shown.

House prices have grown 6.8 per cent in the Gold Coast hinterland over the past year, and 2.7 per cent in city’s eastern suburbs, while Brisbane’s city-wide median house price fell by 1.8 per cent over the same period, according to Domain’s House Price Report for the September quarter.

Median house prices have risen most in Clear Island Waters, Paradise Point and Coombabah, while units in Mermaid Waters, Arundel and Coombabah saw the biggest jumps.

The median unit price in Mermaid Waters had increased by 21.2 per cent to $472.500 in the year to October. Local agents say the interest in the area stretches from Mermaid Waters right across to the ocean.

 Median price growth – houses
SuburbMedian priceYoY change
Clear Island Waters$932,00013.0%
Paradise Point$1,155,00011.1%
Coombabah$440,0006.7%
Merrimac$514,0006.0%
Tugun$698,0005.9%
Carrara$571,0005.3%
Biggera Waters$610,0005.2%
Hope Island$905,0005.1%
Burleigh Heads$815,0003.8%
Runaway Bay$8755003.0%
Source: Domain

Mermaid Beach is the second-most expensive suburb in Queensland with a median house price of $1.455 million, and the Gold Coast’s exclusive beachfront street Hedges Avenue is experiencing a surge in sales.

A number of notable sales this year have included 99 Hedges Avenue which sold for $6.395 million and 223 Hedges Avenue, which sold for $6.325 million. A vacant lot at 49 Hedges Avenue sold for $4.2 million.

Leading agent Luke Henderson from John Henderson Professionals Mermaid Beach said prestige buyers were feeling extremely confident about the economic future of the Gold Coast and the city’s property market.

“I think you just can’t beat waking up to the sound and the sight of the waves crashing onto the beach,” Henderson said. “Mermaid Beach is a lifestyle destination, with its relaxed coastal vibe. Strict height limits ensure that its village feel is retained and buyers feel comfortable when paying for such a great location that their investment has good potential for capital growth.

“Currently we’re seeing the lowest listing levels I can recall in 20 years of selling real estate in the suburb, which I believe is due to concern from sellers that if they sell out they may not be able to get back in at the same price level.

“Strong growth has also been recorded in Mermaid Waters which is a highly popular area for families, due to its larger land sizes and location in the heart of the Gold Coast making it easily accessible to shopping, cafes and transport.”

He added he expected the market to remain strong heading into the Christmas and New Year period.

“Spring and summer are always growth periods on the Gold Coast,” he said. “Southerners look to secure a position in readiness for next year’s school commencement and to ensure the great warm weather we see at this time of year.”

 Median price growth – units
SuburbMedian priceYoY change
Mermaid Waters$472,50021.2%
Coombabah$451,50012.9%
Arundel$378,50012.3%
Main Beach$785,0008.3%
Runaway Bay$530,0005.5%
Benowa$570,0003.6%
Burleigh Heads$598,5002.7%
Broadbeach Waters$533,0002.5%
Surfers Paradise$385,0001.3%
Nerang$330,7500.8%
Source: Domain

The median unit price in Arundel rose 12.3 per cent over the past 12 months to $378,000, and 26.2 per cent over the past five years, Domain data shows.

“Arundel is seeing growth because we have bigger blocks, bigger houses and property is well priced,” said Neil Cameron, principal at Harcourts Arundel said. “We’ve seen growth around the golf course and the light rail has also attracted interest. Schools are good in this area, and we’re close to the M1.”

In Coombabah median unit prices were up to $451,000, an increase of 12.9 per cent over the past 12 months, and 24.7 per cent over a five-year period.

The location and value for money were the main draw cards to the area, according Ray White Runaway Bay sales agent Ross Kachel.

“Parks, shops and Coombabah Lakes are all right on the door step, as is Runaway Bay shopping centre,” he said.

 

Source: www.domain.com.au

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Developments

Government Bans High-Rise Development at The Spit

Government Bans High-Rise Development at The Spit (1)

All future high-rise developments along The Spit will be restricted to a three-storey limit following community backlash against the masterplan.

More than 23,000 pieces of feedback were submitted during an 18-month masterplanning process, prompting the state government to change regulations for the area.

Originally The Spit’s masterplan for an “Ocean Park” included turning 140-hectares into light rail stations, super-yacht berths, and a proposal for an ocean cruise ship terminal.

While The Spit masterplan was drafted, ASX-listed developer Sunland withdrew an application for a proposed $600 million residential project on the site which included two 44-storey towers.

Last month Sunland put the 3.9-hectare Mariner’s Cove retail village and marina precinct on the market.

Government Bans High-Rise Development at The Spit (2)

Minister for Planning Cameron Dick said the changes were made because The Spit had an unsurpassed natural beauty that the Gold Coast community was rightly passionate about.

“The message was clear: the community broadly supported a three-storey height limit being imposed,” he said.

“The new regulation delivers on our commitment to support the community’s expectation for low-rise development on The Spit.”

Amendments were made to the Planning Regulation 2017 to prohibit development over three-storeys or 15 metres.

“The height limit will apply to buildings and structures within the building height control area, including Sea World, Sheraton Mirage and all land south towards Southport Yacht Club,” Dick said.

Government Bans High-Rise Development at The Spit (3)

“Outdoor rides within Sea World will be exempt from the height limit, however, new buildings in the theme park will have to adhere to the three-storey limit.

“This regulation change will ensure future development integrates with the existing landscape and maintains the prominence of The Spit’s natural values.”

Gold Coast Waterways Authority chief executive Hal Morris said they would be collaborating on the implementation of the masterplan.

“The waters and foreshores around The Spit are a real asset, so it’s important the connection between the land and water is maintained,” he said.

City of Gold Coast mayor Tom Tate welcomed the news and said council’s $35 million investment for transport and access upgrades along The Spit would also improve the visitor experience for locals and tourists alike.

“Maintaining the height limit will ensure the natural character and charm of The Spit continues in line with community expectations,” he said.

 

 

Source: theurbandeveloper.com

 

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Gold Coast

Youth Homeless Centre in Southport Under Way

Youth Homeless Centre in Southport Under Way (1)

Work on a new $13 million Youth Foyer for young people at risk of homelessness on the Gold Coast has turned the first sod.

The Queensland government purchased the site for $2.6 million in 2017, with plans for completion of the Southport-based project originally slated by the end of this year.

The centre, at North and High Street, will be managed by Gold Coast Youth Service in partnership with Horizon Housing Company, and provide accommodation for vulnerable young people aged 16 to 25 years.

“So, rather than worrying about where you’re going to sleep or where your next meal is coming from, you can study and work hard to create a brighter future,” member for Gaven Meaghan Scanlon said.

Each young person living in the Youth Foyer would need to be in employment, education or training to be eligible to live at the centre.

Scanlon said they will also pay 25 per cent of their income in rent.

Youth Homeless Centre in Southport Under Way (2)

The development will include 40 self-contained apartments with 24-hour on-site supervision and support for the young tenants.

“We are working with the Gold Coast community to build something that meets the expectations and needs of not just future residents, but the local community who will welcome them in,” Housing and Public Works Minister Mick de Brenni said.

“What’s clear is that this community is crying out for more social and affordable housing.”

This project is expected to employ 600 tradies including 60 apprentices.

 

 

Source: theurbandeveloper.com

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Gold Coast

Bureaucratic stroke of pen boosts Perth, Gold Coast

Bureaucratic stroke of pen boosts Perth, Gold Coast

EXPERT OBSERVER

Why should property investors care that Perth and the Gold Coast are now considered “regional” towns instead of “metro” cities? 

They should care because the change could have a significant impact on the real estate markets in those two cities, creating both opportunities and risks for investors. Here, I will explain why.

We all know that immigration is one of the reasons Australia’s economy has kept growing year after year, for the past 27 years. A provocative professor at the University of Sydney claims that Australia’s “economy is addicted to immigration” because —without the constant growth in population— our economy actually would have gone into recession several times over the past three decades.

Saving the country from recession isn’t enough anymore, however. The federal government wants immigrants to do more. That’s why it’s passed its regional immigration plan, which allocates 25,000 visas to immigrants who are willing to live for three years in regional Australia. After that, they can qualify for permanent residency. 

The government billed the plan as a way to boost hardscrabble Australian bush towns.

Now, the government has decided that both Perth and the Gold Coast qualify as “regional” under the regional migration program. While that may be bad news for smaller, dustier towns, for the two cities it is excellent news. It means that they can benefit from thousands of new immigrants, the jobs they help create, the university fees they pay, and the money they invest in housing.

The new regional designation could be the factor that helps many students, workers, and investors from China decide to move to these two cities. It won’t mean more transactions tomorrow. Over the next 12 to 24 months, however, this change could add several thousand additional sales to the two markets. 

A 10% TO 20% INCREASE IN TRANSACTION VOLUME?

These following numbers are an example of how it could play out. In Perth last year, there were about 26,000 sales. An additional 3,000 sales in a year would be more than a 10 per cent increase in annual transactions. An extra 10% in transaction volume would help put a floor under prices and help stimulate new construction. 

On the Gold Coast this year, there will probably be about 15,000 transactions. At that pace, an additional 3,000 sales would mean an increase of about 20% in transactions. That would have a similar impact as in Perth. 

The reclassification sounds like bureaucratic mumbo jumbo, but it has real-life impact. It was subject to a lot of behind-the-scenes lobbying and arm-twisting. This change could mean thousands of new residents coming to these cities and buying property, attending university, or starting businesses. It’s an economic gold mine for Perth and the Gold Coast.

There will now be a total of 25,000 visas for foreigners willing to live in regional areas. With their new “regional” classification, the Gold Coast and Perth have become (with Adelaide) the locations by far most likely to attract those immigrants. 

The educational institutions, job markets, infrastructure, and lifestyle in the cities makes smaller regional destinations look less appealing by comparison. Regional areas like Dubbo or Geelong have a lot going for them and can provide excellent opportunities to new migrants. But the Gold Coast, Perth, and Adelaide are more prominent and by most calculations offer better prospects.

WHAT DOES IT MEAN FOR INVESTORS?

The change will also give the Gold Coast and Perth a boost in the battle to displace Melbourne and Sydney as the top destinations for Chinese migrants, students, and property buyers. 

Both cities are struggling to increase the share of foreigners they attract. Their retailers want more residents, their universities want more students, and their developers want more property buyers.

If I were a property investor in the Gold Coast or Perth today, this new development would reassure me. Population growth has been the primary driver of price growth in Australia over the past several decades. With the regional migration program, Perth and the Gold Coast stand to see their population growth increase above present rates. Investors who can ride that growth to profits should do very well.

 

 

Source: www.propertyobserver.com.au

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